Risk Assessments: Foundation of compliance programs
It is important to recognize that successful compliance programs rest on a foundation of meaningful risk assessments.
Yet, performing effective risk assessments that provide compliance teams with actionable results can be a difficult art to master. As a result, companies fail to take a comprehensive, integrated approach to risk management and rely on standalone exercises, internal audit, and other formats to conduct risk assessments. However, since these assessments need to be tailored to your company’s specific risk tolerance, it makes good sense to have a look at a new Risk Management tool.
Now, you can take a customized approach that fits your organization’s risk process. The Risk Management tool I am describing enables compliance managers to make strategic, data-driven decisions based on a holistic, dynamic, and realtime view of all compliance-related activities across multiple lines of business and entities.
The management system not only compliments your annual risk assessment but it also enhances the functionality of other compliance functions. For example, the Due Diligence becomes more powerful when used in conjunction with the Risk Management tool. This enhancement brings your program one step closer to reaching reg-tech nirvana, connected compliance.
When your risks evolve, so should the mitigation actions your team takes. Change is inevitable and by taking a flexible risk-based approach you are able to respond to those changes faster and more efficiently than ever before. The new Risk Management tool will help you take a proactive approach to your compliance program.
The Risk Management tool includes a risk library, the ability to easily create and filter risks, and an activity log to keep track of all changes. The tool gives compliance teams the ability to make changes over time and stay focused on mitigating risks rather than trying to understand which ones are present.
With the Risk Management tool, compliance teams can:
•Easily map and manage all risks across the company in a centralized library, along with any related controls and action plans.
•Design customized risk rating scales and matrices that fit your organization.
•Drop manual, paper-driven, siloed processes for a simple and user-friendly solution.
•Track compliance risks in real-time using a heat map that enables you to instantly react to critical changes to any risk throughout the business.
•Automatically update risk assessments based on changes to the business.
•Ensure that actionable next steps are being executed and easily check on progress
Above are just a few ways that real-time risk management not only automates previously complex datacollection projects but elevates your legal and operational compliance program by giving you insights into everchanging risks.
They provide additional insight into how to establish a risk assessment process that works for your company by ensuring you have the right framework in place to gather relevant information and then act on it.
The tool is available in the Philippines. The software that allows this to happen and is capable to guide you throughout the journey of data privacy protection is called ‘Data Protection Management System’ or short DPMS.
We would love to help you design a fully risk-based approach to compliance.
Contact me at schumacher@eitsc.com